The Estonian Government Has Increased Its Pressure On Cryptocurrencies!
Estonia’s Finance Ministry has begun to keep a tight grip on business because of the high risk of money laundering in the cryptocurrency sector.
More than 1,000 cryptocurrency startups headquartered in Estonia have lost their legal licenses in 2020, the country’s Finance Ministry said last week, according to a report in local news organization Postimees. At a meeting between members of the government Anti-Money Laundering Commission, Finance Ministry Head Veiko Tali said “more attention” should be paid to cryptocurrency businesses.
Tali added that the government’s “vetting and intervention tools” for cryptocurrency Affairs had previously been limited, but new changes to Estonian law, which came into force in 2020, had introduced stricter measures.:
“Most of these companies have minimal connection to Estonia, and some companies ‘ customers come from far-flung countries.”
Although 1,000 companies lost their licenses, not all of them lost their jobs. The report notes that while the new regulations have smashed 1,000 businesses, more than 400 companies are still operating in the country, maintaining their business as usual and adhering to strict customer recognition and anti-money laundering laws.
They Were Legally Damaged.
Cryptocurrency companies have historically suffered because of the legal aspects of their business, despite the growth of the industry. Most countries do not legally recognize cryptocurrencies, and major banks block accounts found to be related to cryptocurrency businesses, creating a barrier to trouble-free operations.
Meanwhile, a separate report in Estonia earlier this year claimed that the country’s “e-Residency” Program, which gives digital identities to people of other nationalities and allows them to open bank accounts and businesses, is growing in popularity among cryptocurrency scammers.